CPP sells its Transurban stake for $900m

Tollroad group Transurban has confirmed the Canada Pension Plan Investment Board, its second-largest shareholder, sold its entire stake in the company for some $900 million.

As reported in StreetTalk on Monday, the Canadian pension fund – part of a consortium that made a failed attempt to buy Transurban last year – has got rid of almost 170 million shares via a sale to UBS at $5.23 per share.

It remains unclear who has acquired the fund’s stake, which accounted for almost 13 percent of Transurban’s capital, from UBS but it is understood to have been sold to several buyers.

Transurban said existing security holders had increased their stakes in the company and new security holders had been added to the register.

“Our focus remains on increasing the wedge of free cash available to security holders through operational excellence and disciplined investment," Transurban said.

The Canada Pension Plan follows the lead of the Ontario Teachers’ Pension Plan, which sold its holdings in Transurban last year after the tollroad group knocked backed a $7.2 billion takeover bid from the two funds and investment group CP2.

Ontario Teachers is now in the process of buying airport group MAp’s stakes in Brussels and Copenhagn airports as part of an asset swap while the Canada Pension Plan last year spent $3.4 billion acquiring another Australian tollroad group, Intoll.

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The Canada Pension Plan on Monday declined to coment on what it would do with the proceeds from the disposal but said the sale of its stake was related to a decision to reallocate its assets and it did not bear any ill will towards Transurban following the failed bid.

“The Canada Pension Plan monitors its investment holdings on a regular basis to determine the best allocation of our assets. The sale of our holding in Transurban is part of our ongoing portfolio management."

The pension fund is understood to be happy with the price it received for its stake in Transurban. It had offered $5.42 per share to acquire Transurban last year as part of a consortium.

CP2, Transurban’s largest shareholder with a 13.5 percent stake, has told The Australian Financial Review it is committed to keeping its stake in Transurban.